Return to The Money Mentor Blog

Is a rollover right for you?

September 19, 2014

By Alliant Credit Union

Alliant financial consultants

Have you recently changed jobs? Or have you changed jobs a few times over the years? Then you may be juggling multiple retirement plan accounts. Sure, it’s acceptable to leave your money in your former employer’s plan, as long as your balance is over $5,000 and your old employer can’t cash you out. But, in many instances it may benefit you more to consolidate your assets.

Consolidation can make it much simpler to administer and allocate your assets.1 When your entire retirement portfolio is summarized on one statement, it’s easier to track performance and make changes. But before you initiate a rollover, compare the investment options and their associated fees in your old plan versus those in your new plan.

  • Could you properly diversify your assets in your old plan?1 If your invest¬ment choices were limited, consider moving your old account into your new account.
  • Are the investment fees higher or lower in your current plan? If you pay more with the old plan, consider moving your assets to a plan with lower investment fees.
  • Are you satisfied with the investment choices and fees charged in your current plan? If you’re unsatisfied with your current plan and not thrilled about your old plan, consider the option to roll over your old plan assets into an IRA.

Initiating a rollover isn’t rocket science. First, check your current plan rules to confirm that rollovers are permissible – most plans accommodate this feature. Then, contact the administrator of your old plan (this information is on your quarterly statement). Some plan providers have a simple online request process, while others require you to complete a paper-based rollover form. Your current plan or IRA provider may even furnish a rollover service for you.

On another note: it’s important to know the difference between a rollover and a distribution. A rollover allows you to transfer your money from one qualified retirement account to another without incurring tax consequences. “Qualified” accounts include your new employer’s plan or a rollover IRA.

Securities and advisory services offered through LPL Financial, a registered investment advisor. Member FINRA/SIPC. Insurance products offered through LPL Financial or its licensed affiliates. Alliant Credit Union and Alliant Retirement and Investment Services are not registered broker/dealers and are not affiliated with LPL Financial. The financial consultants of Alliant Retirement and Investment Services are registered representatives of LPL Financial. The LPL Financial Registered Representatives associated with this site may only discuss and/or transact securities business with residents of the following states: AK, AL, AR, AZ, CA, CO, CT, DC, DE, FL, GA, HI, IA, ID, IL, IN, KY, LA, MA, MD, ME, MI, MN, MO, MS, MT, NC, ND, NE, NH, NJ, NM, NV, NY, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VA, VI, WA, WI, WV, WY.

Not NCUA Insured

No Credit Union Guarantee

May Lose Value

The LPL Financial Registered Representatives associated with this site may discuss and/or transact securities business with residents of all 50 states.
*Financial consultants registered with LPL Financial.

Up your Financial IQ

Sign up for our monthly newsletter to help you stay at the top of your financial game.